The government is facing backlash from car manufacturers, as electric vehicle (EV) sales are lower than expected. Manufacturers argue that current rules are too harsh and have led to job cuts. To boost EV sales, several changes could be made.
1. Subsidize the Cost
Electric cars are still more expensive than traditional ones. The government offers some subsidies, like reduced company car tax and salary sacrifice schemes. However, these don’t help those who can’t access such programs. Automotive journalist Quentin Willson suggests interest-free loans for used EVs and halving VAT on new cars. These changes could be funded by lifting the freeze on fuel duty.
2. Make Electric Cars More Affordable
EV prices are dropping, partly due to cheaper batteries. Since 2015, battery costs have fallen by about 70%. Yet, affordable options remain scarce, as manufacturers focus on pricier models. The Dacia Spring, priced at £14,995, is a step in the right direction, and BYD’s super-budget Seagull will be available next year.
3. Clarify Policy Changes
The government’s shifting deadline for banning petrol and diesel cars—originally 2040, now 2035—has confused consumers. Industry experts suggest a clear, consistent communication program to address concerns about dates, costs, and charging infrastructure.
4. Lower VAT on Public Charging
Public charging points are more expensive than home charging due to higher VAT rates. EV owners pay 5% VAT for home charging, but 20% at public chargers. Advocates call for the public rate to match home rates, making it fairer for those who cannot charge at home.
5. Improve the Public Charging Network
Concerns about charging infrastructure remain a top barrier for potential buyers. Although the number of charging points is growing, users still face long wait times and unreliable chargers. To meet demand, the government needs to accelerate the expansion of charging points. This includes tackling planning delays and grid connectivity issues, which currently slow down the process.